Memo 2

Date: September 17, 2016

Subject: Proposal to go global

It has come to my attention that our sales locally have been decreasing. In the past three years, we have recorded a 25% decrease in our sales. This decrease has had a huge impact on our profits something that has in turn affected the price of stock in the commodity exchange market. After a thorough analysis, we have realized that decline in our sales has been as a result of increased competition in the domestic market. The competition has been facilitated by new entrants in the market whose products are of similar quality to ours but retail at low prices.

In order to effectively deal with the problem we are currently facing, I have come up with a proposal to go global. Here, our firm will venture into overseas markets. This strategy will enable us acquire new markets, hence an increase in our sales. According to my proposal we should first venture into India and China. These nations have a combined population of over 2 billion persons, a clear indication that our products will get the market they need. However, we will have to be very careful with how we enter these markets. I was proposing we use the joint-venture strategy with domestic firms operating in the two markets. This strategy will reduce our operating costs and also enable us introduce our products to the new markets in an effective manner.

Despite the strategy we intend to use to venture into the global market, we will have to spend some funds. My estimates indicate we will have to spend around $1billion. However, the benefits are going to be immense. For instance, our sales are likely to increase by over 300%. At the same time, our brand is going to be popular across the world something that will give us an edge over our competitors.